TWO WHEELER INDUSTRY
Emerging in India – 1940 .
Growth slow in 1950 - 60 Nationalization .
Market share – 75% .
India’s 2nd Largest 2 wheeler market in world .
HISTORY & CORPORATE
PROFILE OF HERO HONDA
Hero Honda is a two-decade-old story, Joint venture between
Hero (India co.) & Honda (Japan co.) in 1984.
In 2001, for the first time achieved, ‘World’s No.1’ two-
wheeler manufacturing company.
Now, Hero Honda Motors Ltd. Is the world’s Largest
manufacturer of two-wheelers for 9 consecutive years.
ACHIEVEMENTS
1985 - First 100cc Bike.
1988 - Was the No. 1 among all motorcycles in India.
1991 - National Productivity Council’s ( NPC) Award.
1992 - National Safety Award.
2002 - Fastener World Established.
2006 - Hero Honda enters the scooter’s segment, launches
100cc ‘’Pleasure.
PRODUCTS
Achiever
Ambition 133, Ambition 135
CBZ, CBZ Star, CBZ Xtreme
CD 100, CD 100 SS, CD Dawn, CD Deluxe, CD Deluxe (Self Start)
Glamour, Glamour F1
Hunk
Joy
Karizma, Karizma R, Karizma ZMR F1
Passion, Passion+, Passion Pro
Pleasure
Street
Splendor, Splendor+, Splendor+ (Limited Edition), Super Splendor,
Splendor NXG
HERO HONDA TIMELINE
1956 - Formation of Hero Cycles in Ludhiana (Majestic Auto
Limited)
1983 - Joint Collaboration Agreement with Honda Motor Co.
Ltd. Japan signed. (Shareholders Agreement signed)
1984 - Hero Honda Motors Ltd. Incorporated.
2001-The Company became the largest two-wheeler
manufacturing company in India and globally.
2010 - The board of directors of the Hero Honda group had
decided to terminate the joint venture between Hero Group of
India.
REASONS FOR SEPARATION OF
HERO-HONDA
In 1998 Honda decided to set up its own scooter manufacturing
subsidiary
In 2010 Honda Motorcycles and Scooters India Private Limited
decided to launch a 110cc (Cubic centimeters, a unit of volume) then
the conflict arose.
As directors on the board of Hero Honda, all of them had access to its
plans and strategies while Hero Honda had access to none of Honda’s
plans.
The fourth issue was related to Hero Honda wanting to do its own
independent R&D and manufacturing its own products.
On the other hand, Honda was making its expansion stronger in India
by introducing efficient models. (models such as Activa,Dio &
Eterno)
Let us see journey of both Hero and Honda company after
separation….
INTRODUCTION
Hero Honda started in 1984 as a joint venture between Hero
cycles of India and Honda of Japan
The company is the largest two wheeler manufacturer in India.
The 2006 Forbes 200 Most Respected Companies List has
Hero Honda Motors Ranked in 2010, when Honda decided to
move out of the venture. Hero group bought the shares held by
Honda.
Subsequently, in August 2011, the company was renamed as
HERO MOTORCORP with a new corporate identity.
On June 4, 2012, HERO MOTORCORP approved a proposal
to merge. The investment arm of its parent Hero investment
pvt. Ltd. Into the Automaker.
The decision comes after 18 Months of its split from Honda
Motors.
COMPANY DETAILS
Name of Company
Country
Founded
Industry
Headquarter
Key People
Product
Employees
Register Office
Website
HERO MOTORCORP
India
On January 19,1984
Automobile Industry
In New Delhi
Brijmohan Lall Munjal
Two wheeler and Four wheeler
14,000
Hero Motorcorp Ltd. 34,Community Centre, Basant
Lok, Vasant Vihar, New Delhi 110057, India
www.heromotorcorp.com
SWOT Analysis
Strength
Huge brand equity and one of the biggest
players in the two wheelers Indian market.
Excellent R&D, and wide variety of products
in every segment.
Excellent distribution over 3000 dealership
and service centers.
Weakness
Absence in the premium bike segment.
High import for its spare parts i.e. over 30%
imports.
Most of the products have similar features
and low on design and innovation.
Opportunity
Two-wheeler segment is one of the most
growing industries.
Export of bikes is limited i.e. untapped
international markets.
Affordable products with reasonable cost.
Threats
Strong competition from Indian as well as
international brands.
Dependence on Government policies and
rising fuel prices.
Better public transport will affect two-
wheeler sales.
ACHIEVEMENTS
2010 - Ranked No.3 Most trusted brand across categories
amongst Young Adult Males.
2010 - Rated as Top Indian Company in Automobile- two
wheeler sector by Dun & Bradstreet- Rolta Corporate Awards.
2011 - Ranked No.1 Brand in the Auto (two wheelers) category
in the Brand Equity ‘’Most Trusted Brand”.
Two Wheeler Manufacturer of the year Award by Bike India
Magazine.
“Most Recommended Two Wheeler Brand of The Year” Award
by CNBC Awaaz consumer awards.
Let us see journey of Honda Company……
INTRODUCTION
Honda Motor Company. Ltd is a Japanese public
multinational corporation primarily known as a manufacturer
of automobiles and motorcycles.
Honda has been the world’s largest motorcycle manufacturer
since 1959, as well as the world’s largest manufacturer of
internal combustion engines.
Honda surpassed Nissan in 2001 to become the second-largest
Japanese automobile manufacturer.
Honda is the Sixth largest automobile manufacturer in the
world.
The company achieved the number one position among all
mass production cars sold in USA.
SWOT Analysis
Strength
Competence in engine manufacturing-
company’s core product.
Diversified product portfolio.
Strong position in Asia’s motorcycle
marekets.
Weakness
Dependence in North America to
generate most of the revenue.
Low investments in research and
development (R&D) leading to
innovative products.
Increased market penetration and lower
demand.
Opportunities
Increasing government regulations.
Improving U.S. economy.
Timing and frequency of new model
releases.
Threats
Increased competition.
Rising Japenese Yen exchange rates
Natural disasters.
ACHIEVEMENTS
The company achieved the number one position among all
mass production cars sold in the USA.
Honda was gaining more market share in India by
introducing models such as Activa, Dio & Eterno.
In 2008, Beijing Auto Show, Honda announced that they were
looking to develop an entry-level brand exclusively for the
Chinese market similar to Toyota’s Scion brand in the USA.
CONCLUSION
Hero is an Indian company and Honda is a Japanese company.
Those companies has to build strong brand awareness and
credibility among its customers.
When there was a joint venture it was India’s 2nd Largest two
wheeler company.
The main conflict for seperation arose when Honda decided to
launch a 110cc bike.
On technical base Bajaj is the best from other but from our
research, consumer prefer both Hero and Honda bike due to
high resell value and low maintainance.